Identify Which of the Following Statements Is True

question 37

Multiple Choice

Identify which of the following statements is true.

• A) Under the check- the- box regulations, an LLC that has one member (owner) may be disregarded as an entity separate from its owner.
• B) A new LLC that is owned by four members elects to be taxed under its default classification (as a partnership) in its first year of operations. The entity is prohibited from changing its tax classification at any time in the future.
• C) An unincorporated business may not be taxed as a corporation.
• D) All of the above are false.

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Definitions:

Article 3

Often refers to a section of a constitutive document of an organization, treaty, or a part of a legal code detailing specific provisions related to governance, legal processes, or rights.

Certificates of Deposit

Fixed-term financial instruments issued by banks that offer a fixed interest rate in exchange for keeping the deposit untouched for a predetermined period.

Orders to Pay

Instructions typically issued by a debtor authorizing their bank to pay a specified amount of money to a creditor on a certain date.

Certificate of Deposit

A Certificate of Deposit is a financial product offered by banks that provides an interest rate premium in exchange for the customer agreeing to leave a lump-sum deposit untouched for a predetermined period of time.